The Construction Industry Scheme, or CIS as it is commonly known is a taxation method for people engaged in trades within the construction industry. This can be the trades you would expect such as, bricklayers and groundworkers but can also include electricians, plumbers, carpenters etc.
Essentially, any trade that subcontracts to a larger business that is regularly engaged in this kind of activity will need to operate CIS and this applies to sole traders, partnerships and Ltd companies. By the same token, any business that engages subcontractors on a regular basis will also need to operate the scheme.
Subcontractors need to have a CIS registration number and this needs to be validated before they are paid and the subcontracting company will need to make monthly online submissions. The subcontractors themselves need to keep a full account of tax deducted under the scheme and then report this on their self-assessment returns at the end of the year.
As you would expect there are penalties for non-compliance so it is best to be prepared and manage this in an efficient way.
How we can help?
Here at SM Accountants we are well versed in operating CIS schemes for contractors. We can set up your registration for you, run the verification process, produce compliant statements of pay and complete and submit your monthly returns.
At the end of the tax year, we will reconcile all of your monthly returns with your accounts, ensure completeness and accuracy and produce annual statements for your subcontractors. If you are a subcontractor then we will be able to prepare your self-assessment return and help you identify any deductions you can make to minimise your tax bill.
Call us now
If you would like to find out more about how we can help you with your CIS, or even if you are unsure whether this applies to you then call us now for a free, no-obligation conversation – it may be the best call you make today!
